KUALA LUMPUR, Jun 7 – The shake-up at Felda Global Ventures Holdings Bhd (FGV) will have minimal operational impact over the near-term, says Kenanga Investment Bank Research. The research house, however, was of the view that the move to oust Group President/Chief Executive Officer (CEO) could shake up FGV’s long-term focus on its core businesses and fuel uncertainty over the company’s prospects.
“Nevertheless, over the near-term, we expect minimal operational impact and thus maintain our financial year 2017-2018 earnings estimates (on FGV) for now, pending further developments,” it said in a note today. Kenanga Research said its current recommendation on FGV as ‘market perform’ with target profit’ of RM1.85 was subject to review, pending details.
“In the meantime, we expect negative investors’ sentiment from this action to weigh down share prices in the short term,” it added. FGV’s share price continued its drift to as low as RM1.56 in the early trade today. As at 10.30 am, the counter was the third active, down two sen, at RM1.60 with 28.24 million shares transacted.
The Board of Directors of FGV yesterday announced that the Group President/CEO and Group Chief Financial Officer of FGV have been given leave of absence commencing from June 6 pending investigations of certain transactions under Delima Oil Products Sdn Bhd, a subsidiary of FGV. — Bernama
